What is a reasonable estimate for constructing an ADU in LA?

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What is a reasonable estimate for constructing an ADU in LA?

Bruce P.
Rental Property Investor · Los Angeles, CA · Member since 2017 · 154 posts · 24 votes

Hi,

A friend is seriously considering building a detached 600 square foot ADU in their backyard in Southern California (specifically the Westlake/Moorpark area in Ventura county). It will have separate metering (electrical, gas, water, etc.) with a private fence to make it "feel" like a private studio.

What is a reasonable contractor estimate for building an ADU including materials and labor? (let's not worry about permits since those are city specific). If it makes the estimate easier, let's say they are not using "top-end" materials (e.g., super fancy granite counter tops) but "solid" (mid-level in price/quality) that give the ADU a modern look and feel and a foundation of materials that would last a fairly long time without being refurbished.

She is getting quotes with a fairly wide range, from $140K all the way up to $190K.

Thanks in advance!

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Matt R.
Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes
6y

My friend did his permitted detached existing garage for about 30k. Rents $1800.  He did some of the work or lets say GC on the job. No seperate utilities and no central hvac. I like the on wheels idea though to add another one. 

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  • Hai G.
    Investor · San Mateo, CA · Member since 2015 · 62 posts · 52 votes
    6y

    I'm not in LA, but I wrote about some cost range I've seen up here in the Bay Area with regards to ADU build.

    [Link Removed by Moderators]

    I am in the process of building an ADU myself, and the cost of construction I've gotten quotes for range from $250-$400 per square foot. The range you received seems reasonable (I assume LA is more similar to Bay Area than not). Craftsmanship/material used for end product in the lower end of the range I've seen were definitely not that good, but you hold the standard for what's acceptable. I would suggest to check out some finished units from folks that gave you quotes, that way you have an idea.

    1Reply
  • Account Closed
    Rental Property Investor · Oakland, CA · Member since 2014 · 730 posts · 1k+ votes
    6y
    Originally posted by @Bruce P.:

    Hi,

    A friend is seriously considering building a detached 600 square foot ADU in their backyard in Southern California (specifically the Westlake/Moorpark area in Ventura county). It will have separate metering (electrical, gas, water, etc.) with a private fence to make it "feel" like a private studio.

    What is a reasonable contractor estimate for building an ADU including materials and labor? (let's not worry about permits since those are city specific). If it makes the estimate easier, let's say they are not using "top-end" materials (e.g., super fancy granite counter tops) but "solid" (mid-level in price/quality) that give the ADU a modern look and feel and a foundation of materials that would last a fairly long time without being refurbished.

    She is getting quotes with a fairly wide range, from $140K all the way up to $190K.

    Thanks in advance!

     Those quotes sound pretty typical: $200-350/ft depending on finishes. If you’re able to GC the job, you can likely bring it down to around $100-125/ft or a tad bit above that.

    I’m currently researching options as well, since we can now build ADUs on multi family in Oakland. I have a good network of subs so I think I’ll be able to build a 600 sq ft unit at around $100K including permits, utilities, plans. We shall see. 

    4Reply
  • Account Closed
    San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes
    6y

    Are the ADUs on wheels allowed there?  They're allowed in Fresno.  You can find really cute ones for a lot less money than that.  Just a thought.  I've been looking at them.  This website actually lists prices, so you can get an idea of what they cost:  

    https://www.tinyhousebuildingcompany.com/models

    Maybe there's even an option to put them on a foundation, if that's required.

    0Reply
  • Matthew Forrest
    Rental Property Investor · Torrance, CA · Member since 2016 · 263 posts · 132 votes
    6y

    I agree with @Hai G.'s estimate. That being said there is definitely decreasing cost per square foot as you go larger. Since the fixed cost is so high (permits, Gas, etc) it often makes sense to build more house. Also take a look at prefab house. Many of them look even better than stick builds and come in at a lower price point.

    2Reply
  • Karen MargraveBusiness Member
    Moderator
    Realtor, General Contractor, and Developer · Redding, CA · Member since 2009 · 7k+ posts · 4k+ votes
    6y

    @Bruce Park Maybe @Will Barnard

    will weigh in, he's getting pretty familiar with ADUs as conversions, but probably knows cost per sq ft. on construction.

    0Reply
  • Will BarnardPro Member
    Moderator
    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    6y

    If these bids of $140k-$190k include the install of the separate utility meters and lines, permits, design, etc, I think they are well within line. If it is just the construction of the building, then I think they are high.

    As others mentioned, the larger the build, the cheaper per SF it gets (similar to buying a 6 pack vs 12 pack).

    The true value in a great GC and architect is the ability to value engineer the project for you. By designing with cost effective means and planning for cost effectiveness when building, a good team can save you some money and is worth their weight.

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    1Reply
  • Amit M.
    Rental Property Investor · San Francisco, CA · Member since 2013 · 1k+ posts · 1k+ votes
    6y

    Once comment: assuming you’ll have decent quality tenants, I wouldn’t be a cheap *** on the finishing materials, as that is the end result that tenants see and use. Usually the difference between the cheapest *** stuff and slightly better are minor- maybe $4-8k difference for a unit you’ll spend $150-200k to build. Don’t over spend on custom materials and installs, but be smart about finishes. Make sure your GC has a clue, and ask to see pics of finished projects. 

    2Reply
  • Liam B.
    Investor · Los Angeles, CA · Member since 2018 · 43 posts · 20 votes
    6y

    in the end its an ADU used as a rental. You don't need to get super fancy, keep it simple and minimal design. With 600sqft you can design a 1bedroom ADU. 200sqft bedroom and 400sqft living/kitchen. Plumbing is where it could get really expensive. It depends how the current plumbing system runs and connects to the city main line. That is where they have to dig and connect all the plumbing lines. Also, for a separate meter, is her main meter going to be close to the ADU or opposite side of the ADU. That will add up in cost to run the wires, dig the holes and finish it. A lot of little details go into this then the two I just explained which were main ones for me. From what you said I would guess about that range she got quotes. Don't have them get the most expensive contractor and price because they think finishes and fixtures will be high quality, that is a waste of money for this type of investment.

    0Reply
  • Will BarnardPro Member
    Moderator
    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    6y

    @Liam B. Not sure what state you are in but keep in mind that here in Los Angeles, design, finishes, and amenities have a lot to do with your rental rate you can achieve and spending more can often get you much more here. I agree that the investor needs to weigh the costs vs the income said costs can generate and pick the best return. This is where the right person hired can make a huge difference over another.

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    1Reply
  • Liam B.
    Investor · Los Angeles, CA · Member since 2018 · 43 posts · 20 votes
    6y

    @Will Barnard for an ADU it does not make a huge difference if you use X finish for kitchen and Y finish. As long as it looks new and nice. I am in the Los Angeles area.

    0Reply
  • Will BarnardPro Member
    Moderator
    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    6y
    Originally posted by @Liam B.:

    @Will Barnard for an ADU it does not make a huge difference if you use X finish for kitchen and Y finish. As long as it looks new and nice. I am in the Los Angeles area.

    Finishes alone, that may be true, but design, amenities, and quality of construction do make a   big difference.

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  • Liam B.
    Investor · Los Angeles, CA · Member since 2018 · 43 posts · 20 votes
    6y

    @Will Barnard What do you mean by amenities for an ADU. Comparing if the shower is a tub or a stand up rain shower? You're building "affordable housing". Someone looking to rent the ADU is looking to save $$ and isn't all that picky on these amenities and fine details. If they wanted that they would go to 100's of those new build mega apartments with 300 units that have it all for double the price. But I am not saying build a run down place that is made of toothpicks haha. Just a minimalist modern design that somehow let's the tenant have own backyard privacy would be nice.

    If you're building a brand new single family home, 6 unit apartment, or 30 unit apartment, yeah amenities, finish and etc help to increase rent. 

    0Reply
  • Matt R.
    Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes
    6y

    My friend did his permitted detached existing garage for about 30k. Rents $1800.  He did some of the work or lets say GC on the job. No seperate utilities and no central hvac. I like the on wheels idea though to add another one. 

    5Reply
  • John A Murray
    Rental Property Investor · Long Beach, CA · Member since 2019 · 145 posts · 49 votes
    6y

    That's it Matt. I would have put more windows in personally. There are a couple of folks here who have also done garage conversions for around 80k sf. One posted pictures that showed a clean and attractive interior, nothing fancy but nothing to be ashamed of, and perfect for a rental unit. Just like Matt's friend's. Living next to a huge college (CSULB) I anticipate renting to college students when I do rent. As such my plan is to keep it simple, leaving the interior as open and as well sun-lighted as possible, as a studio. I'll pretty up the shower walls and the counter tops and install nice flooring but every thing else will be basic; everything with a focus on durability and ease of cleaning. I'll top it off with a tankless water heater and a mini ductless unit and sub-meter the electricity but prob not the water. Thankfully the $5k developer impact fees are history which will keep my fees around only a few thousand.

    My architect went downtown yesterday to submit the plans, hoping for an over the counter approval, but was told no more OTC approvals for ADU's; and that it will take 4-6 weeks. I hope the city doesn't come up with any new change$ in the meantime.

    3Reply
  • Matt R.
    Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes
    6y
    Originally posted by @John A Murray:

    That's it Matt. I would have put more windows in personally. There are a couple of folks here who have also done garage conversions for around 80k sf. One posted pictures that showed a clean and attractive interior, nothing fancy but nothing to be ashamed of, and perfect for a rental unit. Just like Matt's friend's. Living next to a huge college (CSULB) I anticipate renting to college students when I do rent. As such my plan is to keep it simple, leaving the interior as open and as well sun-lighted as possible, as a studio. I'll pretty up the shower walls and the counter tops and install nice flooring but every thing else will be basic; everything with a focus on durability and ease of cleaning. I'll top it off with a tankless water heater and a mini ductless unit and sub-meter the electricity but prob not the water. Thankfully the $5k developer impact fees are history which will keep my fees around only a few thousand.

    My architect went downtown yesterday to submit the plans, hoping for an over the counter approval, but was told no more OTC approvals for ADU's; and that it will take 4-6 weeks. I hope the city doesn't come up with any new change$ in the meantime.

    Yeah, I think the windows were partly placed for the main house privacy. Figure new one bedrooms nearby are $ 2195, I think this is better value in many ways for a tenant at $1800. 

    1Reply
  • Matt R.
    Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes
    6y

    Stand up style. No tub.

    1Reply
  • Liam B.
    Investor · Los Angeles, CA · Member since 2018 · 43 posts · 20 votes
    6y

    @Matt R. What is the SQFT of the ADU?

    0Reply
  • Matt R.
    Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes
    6y
    Originally posted by @Liam B.:

    @Matt R. What is the SQFT of the ADU?

    400

    0Reply
  • Parker Eberhard
    Contractor · Seattle, WA · Member since 2019 · 339 posts · 325 votes
    6y

    @Sue K. Those mobile houses are glorified campers. Once you do the site development work and run the necessary utilities to make them the equivalent to a site built ADU, the overall cost will exceed that of the ADU

    1Reply
  • Parker Eberhard
    Contractor · Seattle, WA · Member since 2019 · 339 posts · 325 votes
    6y

    @Matthew Forrest pre-fab house costs very rarely include foundation, site prep, and utilities in the advertised costs, which puts prefab above stick built in terms of cost. (If pre-fab were cheaper all buildings would be built that way)

    4Reply
  • Matthew Forrest
    Rental Property Investor · Torrance, CA · Member since 2016 · 263 posts · 132 votes
    6y

    @Parker Eberhard I haven't completed a pre-fab install so I can't comment from experience, but I'm speaking from the estimate conversation I had with a few of the companies. I specifically had them include the foundation, site-prep and utilities costs to make sure it was an apples to apples comparison and I was surprised by how low the estimate for cost per sqft was. 

    While I was surprised, I can understand how construction in a market with lower material and labor cost could provide a large savings. That being said, maybe I should just go have one built and see how it goes! 

    0Reply
  • Will BarnardPro Member
    Moderator
    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    6y
    Originally posted by @Liam B.:

    @Will Barnard What do you mean by amenities for an ADU. Comparing if the shower is a tub or a stand up rain shower? You're building "affordable housing". Someone looking to rent the ADU is looking to save $$ and isn't all that picky on these amenities and fine details. If they wanted that they would go to 100's of those new build mega apartments with 300 units that have it all for double the price. But I am not saying build a run down place that is made of toothpicks haha. Just a minimalist modern design that somehow let's the tenant have own backyard privacy would be nice.

    If you're building a brand new single family home, 6 unit apartment, or 30 unit apartment, yeah amenities, finish and etc help to increase rent. 

    You have presented your opinions twice and I have supplied mine, I don't see the benefit of debating it as it appears you want to be right. All I can say is that in "my experience" which is likely much different from yours, that designing the ADU and implementing finishes and such to obtain higher rental rates in specific market areas has worked well for us. I did not say it is the same for all or across the board. Additionally, I never stated I was building "affordable housing". That is another market area and certainly a viable one. In my areas, the ADU will likely rent for more than the average apartment unit in the area as it will have some yard access, and several other amenities not present in the typical apartment space.

    Podcast Guest on Show #130
    0Reply
  • Karen MargraveBusiness Member
    Moderator
    Realtor, General Contractor, and Developer · Redding, CA · Member since 2009 · 7k+ posts · 4k+ votes
    6y

    @Bruce Park Is it a detached unit or conversion? As with all construction the devil us in the details. What are finish materials and work being bid? What they need to do is get plans and have them bid. Make sure the quality if materials being bid are the same. Also, some areas are standardizing ADU plans so they're pre as approved.

    0Reply
  • Barbie Steele
    Real Estate Agent · FRESNO, CA · Member since 2016 · 60 posts · 42 votes
    6y

    @Account Closed Tiny Homes on Wheels are an excellent option! They are not required to be on a pier foundation in Fresno, but they could be placed on one if you wish. I used to think they were the same as campers until I really looked at them. Being made of regular and many times upgraded housing materials instead of that lighter fiberboard stuff, energy efficient windows, and even wood studs gives you more of solid feel. Many homes already have RV hookups that will fit a THOW, and they can be purchased for as little as 25-35K complete. Plus, if the state decides in 5 years to take away the non occupancy rule, your THOW ADU is easily relocated to another place to rent out there.

    1Reply
  • Account Closed
    San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes
    6y
    Originally posted by @Barbie Steele:

    @Account Closed Tiny Homes on Wheels are an excellent option! They are not required to be on a pier foundation in Fresno, but they could be placed on one if you wish. I used to think they were the same as campers until I really looked at them. Being made of regular and many times upgraded housing materials instead of that lighter fiberboard stuff, energy efficient windows, and even wood studs gives you more of solid feel. Many homes already have RV hookups that will fit a THOW, and they can be purchased for as little as 25-35K complete. Plus, if the state decides in 5 years to take away the non occupancy rule, your THOW ADU is easily relocated to another place to rent out there.

     This is brilliant!  What a perfect solution.  I hadn't thought of the ability to just move them off of the property, if they're no longer allowed, and just put them somewhere else.  Loving this idea and the price.  Thanks.

    0Reply
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